The U.S. dollar traded mixed to higher against the most major currencies after the U.S. weaker-than-expected Thomson Reuters/University of Michigan preliminary consumer sentiment index. The Thomson Reuters/University of Michigan preliminary consumer sentiment index declined to 93.6 in February from a final reading of 98.1 in January, missing expectations for an increase to 98.2. That was the highest level since January 2004.
The harsh weather may have been a key factor of the drop.
The U.S. import price index dropped by 2.8 percent in January, beating expectations for a 3.1% fall, after a 1.9% decline in December. That was the biggest drop since December 2008.
December's figure was revised up from a 2.5% decrease.
The euro traded lower against the U.S. dollar. Eurozone's preliminary gross domestic product (GDP) increased by 0.3% in the fourth quarter, exceeding expectations for a 0.2% rise, after a 0.2% gain in the third quarter.
On a yearly basis, Eurozone's preliminary GDP rose by 0.8% in the fourth quarter, exceeding expectations for a 0.8% increase, after a 0.8% gain in the third quarter.
For 2014 as a whole, GDP rose by 1.4% in the European Union. In comparison, the U.S. economy grew at an annual pace of 2.6% in 2014.
Germany's preliminary GDP gained by 0.7% in the fourth quarter, beating forecasts of a 0.3% rise, after a 0.1% increase in the third quarter.
France's preliminary GDP increased by 0.1% in the fourth quarter, in line with expectations, after a 0.3% gain in the previous quarter.
The British pound traded higher against the U.S. dollar in the absence of any major economic reports from the U.K.
The Canadian dollar traded higher against the U.S. dollar after the better-than-expected Canadian manufacturing shipments. Canadian manufacturing shipments climbed 1.7% in December, beating forecasts of a 0.9% decrease, after a 1.3% drop in November. November's figure was revised up from a 1.4% decline.
The increase was driven by higher sales in the transportation equipment industry.
The Swiss franc traded mixed against the U.S. dollar. Switzerland's producer and import prices declined 0.6% in January, in line with expectations, after a 0.4% fall in December.
On a yearly basis, producer and import prices decreased 2.7% in January, missing expectation for a 1.5% decline, after a 2.1% drop in December.
The New Zealand dollar increased against the U.S. dollar. In the overnight trading session, the kiwi traded higher against the greenback. New Zealand's food price index rose 1.3% in January, after a 0.3% increase in December.
The Australian dollar climbed against the U.S. dollar. In the overnight trading session, the Aussie climbed against the greenback after comments by the Reserve Bank of Australia Glenn Stevens. He said that the government has to increase spending in order to boost demand as the economy has to grow at a faster pace. Monetary policy, at the current level of interest rates, has become more limited in spurring demand compared to a decade ago but still has some ability to assist the economy.
The Japanese yen increased against the U.S. dollar. In the overnight trading session, the yen traded higher against the greenback in the absence of any major economic data from Japan.